Credit risk

Enact Mortgage secures $325 million credit risk transfer

Enact Holdings announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $325 million in supplemental Excess of Loss (XOL) reinsurance coverage.

This Credit Risk Transfer (CRT) transaction covers a portfolio of existing mortgage insurance policies underwritten from July 1, 2021 to December 31, 2021 and takes effect on March 1, 2022.

This latest CRT transaction follows the forward XOL reinsurance transaction executed in January 2022, covering a portion of mortgage insurance policies written from January 1, 2022 through December 31, 2022, which is expected to provide approximately $300 million in reinsurance coverage. with a panel of reinsurers.

Since 2015, Enact has executed approximately $4.4 billion in CRT transactions, including approximately $2.6 billion in reinsurance coverage with highly rated reinsurers and approximately $1.8 billion through our bond-linked note platform. Triangle Re Mortgage Insurance.

Enact President and CEO Rohit Gupta said, “Today’s announcement reflects the continued execution of our growth and risk management strategy and demonstrates our ability to source PMIER capital. profitability and loss protection in a period of financial market volatility and widening spreads.

“Enact’s CRT program allows us to participate effectively in the reinsurance markets with highly rated counterparties and in the capital markets through mortgage insurance-linked notes.

“We select the type and structure of our CRT transactions based on several factors, including market conditions, capacity and cost, with an emphasis on strengthening our capital position and improving capital efficiency while creating shareholder value.”

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